(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "THE PASSING OF THE RANCHO"

STOP 



Early Journal Content on JSTOR, Free to Anyone in the World 

This article is one of nearly 500,000 scholarly works digitized and made freely available to everyone in 
the world byJSTOR. 

Known as the Early Journal Content, this set of works include research articles, news, letters, and other 
writings published in more than 200 of the oldest leading academic journals. The works date from the 
mid-seventeenth to the early twentieth centuries. 

We encourage people to read and share the Early Journal Content openly and to tell others that this 
resource exists. People may post this content online or redistribute in any way for non-commercial 
purposes. 

Read more about Early Journal Content at http://about.istor.org/participate-istor/individuals/early- 
journal-content . 



JSTOR is a digital library of academic journals, books, and primary source objects. JSTOR helps people 
discover, use, and build upon a wide range of content through a powerful research and teaching 
platform, and preserves this content for future generations. JSTOR is part of ITHAKA, a not-for-profit 
organization that also includes Ithaka S+R and Portico. For more information about JSTOR, please 
contact support@jstor.org. 



THE PASSING OF THE RANCHO 

BY J. M. GUINN 

The first real estate boom — that is, a rapid rise ip land values — 
in Southern California was brought about by a disaster that destroyed 
its leading industry certainly an anomolous condition in the history 
of a country. 

For nearly half a century the one great commercial industry of 
the Southland had been cattle raising, first for their hides and tallow 
for export, and later to supply beef to the miners in the gold fields. 
To make it profitable, the cattle industry required the land devoted 
to it to be held in large tracts called ranchos, consequently the settle- 
ment and development of the country was slow and real estate booms 
impossible. 

The first wild rush of miners to the gold fields stimulated the 
cattle industry. The only source from whence the gold hunters could 
obtain fresh meat was the ranchos of Southern California. The 
rapid rise in cattle values forced wealth on the rancheros and they 
spent it lavishly. The importation of cattle across the plains from 
western states and the settlement of the valleys in the central and 
northern part of the State being nearer the mines, brought a decline 
in the prices of cattle on the southern ranchos. To compete with 
the northern producers, the rancheros of the south had allowed their 
ranges to become overstocked, hoping to make up by quantity for 
the decrease in value. 

The famine years of 1863 and 1864, when for two seasons not 
enough rain fell to start the green feed, put an end to the industry. 
A million animals, cattle and horses, starved to death. This calamity 
forced a change in the industries of the Southland. The rancheros 
had no money to restock their ranges nor to cultivate them. To add 
to their misfortune, most of them were deeply in debt and cancerous 
mortgages were eating away their possessions. 

The only hope for the country lay in the subdivision of the 
great ranchos and the distribution of the land among small land 
owners who would cultivate the soil. The first great subdivision 
was that of the Stearns' Ranchos — seven great ranchos located in 
the San Gabriel and Santa Ana valleys. 

Don Abel Stearns, the Rockefeller or Pierpont Morgan of the 
old pueblo, in the flush days of '49 and the early SO's, when a cattle 
range was more profitable than a gold mine, with that Yankee shrewd- 



THE PASSING OF THE RANCHO 47 

ness that characterized him in all his dealings, had turned his genius 
to the acquisition of land. By loaning money on mortgages to im- 
pecunious rancheros, by the purchase of equities in encumbered estates 
and by foreclosures, he had possessed himself of immense land hold- 
ings. When the famine years had passed and the bones of his hun-" 
dred thousand cattle lay bleaching on the sun-scorched plains. Steams 
found himself the owner of a principality in land ; greater than that 
of an English lord ; but financially on the verge of bankruptcy. He 
was the owner of 200,000 acres of land mortgaged for $50,000. The 
ruling rates of interest then ranged from 15 to 24 per cent per annum. 
Without income from his acres and indebtedness piling up, Stearns 
found himself not only on the very verge of bankruptcy but just 
ready to topple over into the vortex of insolvency. In 1864 all of 
Stearns' landed possessions were advertised to be sold at a sheriff's 
sale for delinquent taxes and the total amount of his taxes was 
only about $4,000. The ruling prices of land in Southern California 
after the famine years was 25 to 50 cents per acre. 

The land known as the Stearns' ranchos comprised the following 
grants : Los Coyotes, La Habra, San Juan Cajon de Santa Ana, Los 
Bolsa y Paredas, La Bolsa Chica, and a part of the Los Alamitos. 
Stearns, with the assistance of his old-time friend, Alfred Robinson, 
succeeded in negotiating the sale of these ranchos and the holdings 
he had in San Bernardino County to a syndicate of San Francisco 
capitalists. The original members of the syndicate were Sam Bran- 
nan, E. F. Northam and C. B. Polhemus. Stearns reserved an eighth 
interest in the land. The price paid was one dollar and fifty cents 
per acre. The partners in the deal incorporated under the title of the 
Los Angeles and San Bernardino Land Company. Alfred Robinson, 
the author of the famous book, "Life in California," was made trustee 
and signed all transfers. « 

These 200,000 acres were subdivided and in 1868 were put on 
the market in tracts of 40 acres and up, on easy terms at prices 
ranging from $2 to $10 per acre. They were extensively advertised. 

The lure of cheap lands brought a rush of immigrants from 
central and northern California and from the eastern states, and our 
first boom was on, and it might be added, that booms have been on 
again and off again and gone again many times since, but none of 
them was such a success or did so much for the development of the 
country as that first one. The price of the land was advanced from 
time to time as the country was settled. When the land was all 
sold, the members of that syndicate or their heirs cleaned up a 
profit of $2,000,000. 

The 200,000 acres that Stearns parted with in the financial gloom 
of the 60's for $300,000 are worth today a hundred millions dollars. 
The Laguna, one of the Stearns' ranchos, lying southeast of and 



48 HISTORICAL SOCIETY OF SOUTHERN CALIFORNIA 

adjoining Los Angeles City, was not included in the syndicate deaL 
It was recently sold for eight million dollars. 

Nearly twenty years before the subdivision of the Steams' 
ranches and other great ranchos, and the distribution of the land 
among small land holders, changed the character of the population 
and the industries of Southern California. Henry Dalton, a pioneer 
of the Mexican era and a large land holder, projected a scheme for 
the distribution of some of his landed interests, which, had it been 
carried out successfully, would have precipitated the subdivision of 
the large ranchos and hastened their colonization. 

Dalton in nearly a column advertisement in the Southern Cali- 
fornian and an abbreviated one in the Los Angeles Star in 1855, the 
only newspapers then published in Los Angeles County, thus outlines 
his scheme: 

"A Magnificent Real Estate Distribution by Henry Dalton. 
Four hundred and thirty-four splendid prizes, consisting of splendid 
modern-built private residences in the City of Los Angeles; very 
valuable city and town lots eligibly situated on the principal thor- 
oughfares. Magnificent vineyards and fruit orchards in the highest 
state of cultivation, valuable town property in the city of Benton, 
numerous farms on the Rancho Azusa, comprising the finest agri- 
cultural lands in the lower country, offering the most attractive 
inducements to those wishing to obtain future homes in this the love- 
liest portion of California; and at no late date to form the most 
valuable section of country on the coast of the Pacific, together with 
an extensive lot of improved stock comprising in part valuable 
horses of the best blood in the country, broken to the harness and 
saddle; also horned cattle of improved breeds, etc. 

"Mr. Henry Dalton, proprietor of a large amount of the most 
valuable and productive tracts of land in the beautiful and fertile 
valleys of the County of Los Angeles, and wishing to throw them 
into market and under cultivation by the settlement thereon of an 
agricultural community, has deemed it advisable to present to the 
public the above magnificent distribution scheme amounting to 
Eighty-four Thousand Dollars. 

"No other enterprise in this country has ever presented the 
attractive features offered by this scheme, either, in point of real 
magnitude or intrinsic value. Unlike similar operations which have 
heretofore combined a host of worthless articles of no earthly value 
or utility to the possessor; with perhaps some half a dozen capital 
prizes, this scheme comprizes none but the most valuable and desir- 
able objects, the least of which is well worthy the attention of the 
public." 

Dalton evidently wished to give the impression that his Mag- 
nificent Distribution Scheme was not to be classed with the numerT 



THE PASSING OF THE RANCHO 49 

ous drawings, distributions, raffles and lotteries that were as plentiful 
in his day as stock companies were in ours before the blue sky law 
put them out of business. 

In a parallel column with Dalton's ad. in the Californian is the 
advertisement of H. M. Smith & Co.'s great $100,000 prize raffle. 
The first prize was $10,000 in octagon-shaped $50 gold slugs of 
Argonautic days. No prize in this raffle was worth less than fifty 
dollars. Unfortunately for the investors the proprietors forgot to 
mention the number of prizes, but that was not material. Everyone 
was after the slugs. 

In another column of the Californian, the California Art Union 
was advertising its monthly drawings, where for the consideration 
of $1.00 you could take a chance on a $5,000 gold ingot, silver-lined 
trumpets, Persian shawls, magnificent paintings of the "Descent from 
the Cross," "The Holy Family" and other pious pictures done in 
oil by the young masters. But the prize of prizes was the largest 
diamond in the United States done in paste by experts. 

Sixty years ago lotteries were as thick as leaves in Valambrosa. 
Maryland and Louisiana licensed them, and all the other States 
tolerated them. Even the churches sometimes took a hand in draw- 
ings that bordered close on to lotteries, and justified themselves with 
the plea that the end sanctified the means. Even the Father of his 
Country, it is said, took a chance in a lottery to raise money to 
build a wagon road over the Blue Ridge. He did not win the 
capital prize. Sixty years ago there was no censorship of the mails. 
Everything that went into them went through them. 

Dalton, after justifying his method of distribution, launches 
forth in a eulogy on the southern country that for the tropical 
exuberance of adjectives and richness of descriptive phrase would 
turn our whole Million Club of real estate boosters green with 
envy. 

He says, "The well-known and justly-celebrated natural advan- 
tages of this section of country with its beautiful scenery ; its unsur- 
passed salubrity of climate, its unparalled fertility and ridhness of 
soil, its extensive valleys and broad and limitless plains, its beautiful 
streams and rich and varied scenery need no description to those 
who have visited this garden spot of the Pacific; situated on the 
shores of the illimitable expanse of this mighty waste of waters, 
possessing one of the finest harbors upon the coast on the one hand 
and the only feasible pass through the mountain barriers on the 
other, through which the project of an interoceanic railroad between 
the two oceans can be consumated, the future of this county is 
beyond the power of imagination to conceive, and whether we con- 
sider its present or its future, it presents infinitely superior induce- 
ments to all portions of the State." 



so HISTORICAL SOCIETY OF SOUTHERN CALIFORNIA 

"The catalogue," says Dalton, "will embrace a large number 
of beautiful and convenient modern built dwelling houses, city 
and town lots eligibly situated in the city of Los Angeles ; magni- 
ficent vineyards and fruit orchards unsurpassed in point of thrift 
aiid productiveness ; very valuable town lots in the town of Benton, 
together with splendid farming lands adjacent thereto and comprising 
a portion of the splendid Rancho of Azusa, one of the finest tracts 
in the lower country, and on the direct line between vSan Pedro and 
San Gorgonio, the procpective location of the Great Pacific Railroad. 

"For the purpose of disposing of these valuable and highly at- 
tractive objects, together with a choice selection of personal prop- 
erty, comprising horses, cattle and other live stock, a 'distribution 
scheme' has been formed on the plan of similar associations in other 
portions of the world, thereby offering to all an opportimity of 
securing at a triffling cost a desirable home for themselves and 
families where the remainder of their days may be passed in the 
quiet and peaceful enjoyment of the domestic hearth surrounded 
by the comforts and conveniences that the richest soil and most 
salubrious and healthy climate can afford." 

"The whole is divided in shares placed by general desire at 
the low rate of ONE DOLLAR EACH, giving to the holder an 
interest, by purchase, in the entire enterprise and constituting a 
membership with all the privileges annexed thereto, and the right 
to decide on the mode of distribution. The sale will be completed 
by the disposal of all the shares or by the first Monday in May, 1855, 
and the property will await the order of the shareholders, through 
the fair and impartial decision of a committee dhosen by themselves. 

"Among other highly attractive and valuable features offered 
in this enterprize are one of the most magnificent private dwellings 
in the southern country, now occupied by the Hon. Judge Olvera, 
fronting eighty-six feet on the Main Plaza, with wings extending 
back ninety-five feet, possessing an open court within, a beautiful 
corridor along the entire front, with numerous apartments elegantly 
finished, and combining every convenience pertaining to a first-class 
residence. Value $11,000.* 

Dalton's "one of the most magnificent private dwellings in 
Southern California," is still standing and known as the Olvera 
house. It is located on the northeast corner of Marchessault and 
Olvera Street, fronting on the Plaza. It is the last of the Plaza 



♦Note. — Thia historic house, with an unwritten history, was built about 
eighty years ago by Don Tlburclo Tapala. For many years It was the residence 
of Don Agustin Olvera. Olvera was a prominent citizen in pueblo days, and 
active In pueblo jxolltics. He was deputado at the treaty of Cahuenga and wels 
one of the signers of the arUcles of capitulation between Col. J. C. Fremont 
and General Andres Pico. He was the first county Judge In 1850, when the 
county was organized, and president of the Court of Session. 



THE PASSING OF THE RANCHO 51 

fronts that were once the homes of the pueblo aristocracy and almost 
the last relic of the adobe age of our city. 

After it ceased to be the palatial home Dalton describes it, in 
the later 50*s and early 60's, when Satan and his imps had their 
innings on the Plaza, it became a saloon and gambling liell. Nigger 
Alley, the Plaza's chief tributary from the south was known as the 
wickedest street on earth. After several vigilence committees had 
regulated the morals of the Plaza by hemp and exile, the old house 
became the habitation of the "heathen Chinee." When dilapidation 
and decay had reduced it until it was unfit for even Mongolians 
to inhabit, it was converted into a hay barn and coal yard. The 
spacious hall where once the beauty and the chivalry of the pueblo 
whirled through the dance is now occupied by a Mexican restaurant 
where, if you are indifferent to your surroundings, you can appease 
your hunger at any price from cinco centavos (5 cents) to cuarta 
reales (50 cents) on enchiladas (meal and meat cakes) gallina, 
(chicken), huertos (eggs), fritos empanados (meat cakes), tamales, 
tortillas and other dainties of olden times. 

Dalton's second prize was an extensive and hig'hly productive 
vineyard within fiteen minutes walk of the public square or plaza. 
Value $10,000. 

The next was "one very fine modern built dwelling house, con- 
taining nine rooms, with necessary out buildings, situated on the 
most valuable ground in the city, directly opposite the Court House 
lot fronting 63 feet on Spring Street and running back 155 feet. 
Value $6,000." 

The Court House then was on the corner of Spring and 
Franklin or Jail Streets, where the Phillips block lately stood. 

Of the city and town lots rising rapidly in value there were 
two hundred and forty elegant ones in the city of Benton. It is 
to be regreted that Dalton did not give the price of lots in this 
prospective metropolis of the San Gabriel Valley, Benton City. It is 
to be regreted, too, that he did not give the price per acre of the 
"twenty-four superb forty-acre farms on the Rancho of Azusa" ad- 
joining this metropolis and containing some of the richest and most 
fertile lands in the world. 

As a guarantee of the reality, fairness and security of this 
magnificent real estate distribution scheme, Dalton referred to about 
all the cattle kings and merchant princes of Los Angeles. His ad- 
vertisement ran from January to April in the newspapers. About 
three weeks before the drawing was to be held, it disappeared from 
their columns without explanation, apology or editorial comment. 
The only inference we can draw is that the 84,000 chances in the 
magnificent real estate distribution scheme were not taken. 



52 HISTORICAL SOCIETY OF SOUTHERN CALIFORNIA 

The times then were not auspicious for real estate distributions. 
The people of Southern California had not been educated up to the 
necessity or desirability of small farms. What could a man with 
forty acres do against his neighbor with 40,000? Then the majority 
of those who took chances in distributions, drawings, raffles and 
lotteries were not yearning for land. They wanted quick returns 
on their investments. Smith & Co.'s $10,000 golden slugs had far 
greater attraction for this class than Dalton's $11,000 palatial resi- 
dence. Even Duncan's art union pious pictures appealed more pow- 
erfully to the paisanos than Dalton superb 40-acre farms with their 
illimitable fertility of soil. A farm implied work and work was 
what every lottery patron was trying to avoid. 

A chance in the Monte farmer's distribution scheme (ad in the 
Calif ornian) in which the chief prize was an elegant $500 family 
carriage that had crossed the plains behind an ox team had the 
call in a lottery drawing over whole blocks of Dalton's eligible city 
lots. Land was the cheapest and most undesirable commodity of- 
fered. 

Dalton was a shrewd business man. He could foresee the doom 
of the cattle kings and the division of their domains. To forestall 
his own fate, for he was the owner of myriads of acres, he inaug- 
urated this first subdivision scheme. That it was a failure was 
due to the times and customs. The Rancho Azusa remained intact. 
Benton became a phantom city, its location uncertain. No map of it 
was ever recorded. No house was ever built within its limits. No 
inhabitants ever lived in it. 

The Ranhco Azusa is ghost-haunted by spectre cities. There 
are at least three of these phantoms on it — Benton City, the city of 
Gladstone, and Chicago Park. The last two of these were founded 
in the great real estate boom of 1887. The history of Gladstone has 
been well told by our fellow member, Mr. C. C. Baker, in Vol. IX, 
publications of the Historical Society. Chicago Park, a city of 
2289 lots, was located in the wash of the San Gabriel River. That 
river of torrents, once named the River of Earthquakes, arose in 
its wrath and converted Chicago Park into a maratime city by 
washing its soil and silt into the San Pedro Harbor, forty miles 
away from its former location. 

Its eccentric founder fixed the value of its lots at a uniform 
price of $13 each. Whether or not the choosing of this ill-omened 
number 13 was a defy to Fate, Fate took the challenge and mis- 
fortune overtook the town. Five years later the county assessor 
was assessing these lots in bunches of five at an aggregate value 
of $1.00 for the bunch. 

Azusa of the phantom cities was not the only rancho that Dalton 
owned. He had interests in three others. The aggregate of his 



THE PASSING OF THE RANCHO 53 

landed interests amounted to over 70,000 acres. As a cattle king 
he ranked well up among the feudal royalty. His kingdom was 
subdivided and distributed among many owners, but not by himself. 

Litigation and the "famine years" that killed the cattle industry 
sealed his doom. His magnificent real estate distribution scheme 
involved him in a lawsuit for the trifling value of one share. It was 
carried through the courts and fought with bitterness for years. 

My story is a record of a phase of our civilization passed and 
gone forever. The cattle kings — the vaqueros, their vassals — the 
ranches, their kingdoms — and the lavishness with which they spent 
their wealth, are but the dimly remembered tradition of an age of 
feudal splendor in tinsel settings. It was a dream of affluence and 
an awakening to poverty — a flitting glamor of riches darkened by 
the shadows of want. No heir of a cattle king inherits the kingdom 
of his progenitors. The passing of the Rancho ended the line of 
succession.